From 1993, Liu Han, Liu Wei and Sun Xiaodong, who is being dealt with in a separate case, made their money running gambling dens and dealing in construction materials and futures in Sichuan's cities of Guanghan and Chengdu as well as Shanghai and Chongqing, according to a prosecutors' statement released when the trials began on March 31.

From 1997, when Liu Han and Sun Xiaodong set up the Hanlong Group in Mianyang, the two cooperated with Liu Wei in recruiting a gang of thugs, and the group gradually developed in to a relatively stable criminal organization. The organization had ten steady members and another 20 followers. Liu Han, Liu Wei and Sun were the organizers and leaders of the group.

The group boasted a clear division of labor with Liu Han responsible for commanding the group and decision making, Sun implementing Liu's instructions and managing Hanlong's daily operations, and Liu Wei leading the hatchet men or "bodyguards". The group made tremendous financial gains through organized crime and became an economic force to be reckoned with.

They planned and committed murders and assaults; locked up their enemies; took part in extortion, illegal trade and possession of guns; and tyrannized local people, the statement said. Earlier reports quoted Liu Han as saying that he was "unaware (of the crimes)", "irrelevant (to the activities)" and "not organizing or leading criminal organizations".